Goods and Services that are produced in one country and sold to buyers in another. This trade can be done through shipping, e-mail, transmitted in private luggage on a plane. Traditionally, exports referred to the sale of tangible goods, including fuels, other commodities, parts and components and finished goods. The seller of the goods and services is referred to as the “Exporter.”
Objectives of Export Trade
- Optimum Utilization of Domestic Resources
- Every country has some natural resources in plenty.
- These resources can be utilized to increase the production and sell to those countries where these are in shortage.
2. Earning of Foreign Exchange
- A country with surplus production may earn foreign exchange by selling goods and services to other countries.
3. Sale of Surplus Production
- A country may produce more than it requires.
4. Increase the National Income
- Earning of foreign exchange due to exports add to the national income of a country.
5. Employment Opportunities
- International business helps the business enterprises to focus on more production which requires more manpower that means more employment opportunities.
Imports are the goods and services that are purchased from the rest of the world by a country’s residents, rather than buying domestically produced items.
EXPORTS PROMOTION COUNCILS
The basic objective of Export Promotion Councils is to develop and promote the exports of the nation. Each Council is in charge of the promotion of a specific group of projects, products, and services.
There are many promotional councils based on category supported by government for exports.
APEDA : The Agricultural and Processed Food Products Export Development Authority
The Agricultural and Processed Food Products Export Development Authority (APEDA) was established by the Government of India under the Agricultural and Processed Food Products Export Development Authority Act passed by the Parliament in December, 1985.
SEPC : – Services Export Promotion Council – SEPC is an Export Promotion Council set by Ministry of Commerce & Industry, Government of India. It is an apex trade body which facilitates service exporters of India. As an advisory body it actively contributes to the formulation of policies of Government of India and acts as an interface between the Services Industry and the Government.
MPEDA – The Marine Products Export Development Authority (MPEDA) was set up by an act of Parliament during 1972. The erstwhile Marine Products Export Promotion Council established by the Government of India in September 1961 was converged in to MPEDA on 24th August 1972. MPEDA is given the mandate to promote the marine products industry with special reference to exports from the country.
To know more about Export Promotion Councils check website.
12 Important Steps to follow for Export Business
1. Select Name of the Company
2. Type of Organisation
a) Proprietor b) Partnership c) Limited Company d) LLP
3. Current Account in the Name of the Company
4. Get I.E.Code
5. Export Promotion Councils (EPC) – Join as a member of EPC and avail services and benefits
6. Identify the Importers or Buyers.
7. How to fix Export Price
a) F.O.B. – Free on Board b) C & F – Cost and Freight
c) C.I.F – Cost Insurance and Freight d) Price to be quoted in US Dollar / Pound / Sterling /Euro / Yen
8. Date of Shipment / Date of Delivery
The buyer will send the quantity of goods,due date for sending the goods up to the port after finalising the price.
9. Mode of Payment
Advance Payment through Letter of Credit (LC)
3 Types of LC:-
a) Revocable LC & Irrevocable LC
b) Recourse LC & Without Recourse LC
c) Confirmed LC & Unconfirmed LC
It should be Confirmed, Irrevocable, without Recourse LC
Get Small Exporters policy from (E.C.G.C)
This Policy will cover Buyer’s Risk, Country Risk, Water Risk.
12. Exports Documents
Commercial Invoice, Packing List, Bill of Lading, Certifications.
CHAMBER OF COMMERCE
A chamber of commerce is a form of business network, for eg., a local organization of business whose goal is to further the interests of business. Business owners in towns and cities form these local societies to advocate on behalf of the business community. There are Different models in which Chambers work.
All Chambers will have Memberships, Services, Summits, Expo and many more we have to select the chambers based on out requirements.
- Community Chambers
- City Chambers
- State Chambers
- National Chambers
- International Chambers
SICCI – The Southern Indian Chamber of Commerce and Industry
The SICCI has served Indian business by protecting and promoting their interests at the Regional, National and International levels. On October 9th 1909 – Formation of the Southern India Chamber of Commerce & Industry at Ramkoti Buildings, Madras where the Indian Bank Ltd. was also located.
FICCI – Federation of Indian Chambers of Commerce and Industry
Established in 1927, FICCI is the largest and oldest apex business organisation in India. Its history is closely interwoven with India’s struggle for independence, its industrialization, and its emergence as one of the most rapidly growing global economies. A non-government, not-for-profit organisation, FICCI is the voice of India’s business and industry.
TCC – The Tamil Chamber of Commerce
The Chamber is 75 years old and celebrated its Platinum Jubilee recently. Honourable Vice President of India Thiru M.Venkaiah Naidu was the Chief Guest and inaugurated the Platinum Jubilee celebration and distributed the TCC & Chozha Naachiar Foundation EXIM Awards to the top Exporters, Importers, Ports, Airlines, CFS, CHAs. We look back with pride and satisfaction in the past 75 years of our platinum period.
MCCI – Madras Chamber of Commerce and Industry
Eighteen businessmen of Madras met at the office of Binny & Co. on the 29th September 1836 and unanimously resolved “that an Association be formed in Madras as Madras Chamber of Commerce”. These founding members with John Alves Arbuthnot as the Chairman made up the first Committee of the Chamber.
Andhra Chamber of Commerce
Andhra Chamber which made its humble beginning on August 17, 1928 with 35 Members has today well over 1700 Members – Individuals, Proprietary and Partnership Concerns, Public and Private Limited Companies and Life Members and around 55 Affiliated Chambers of Commerce and Industry and Trade Associations.